The 'Movers Clause' Explained: How to Switch Without Paying Termination Fees

Introduction

Dreading that early termination fee when you move? Here's good news: Texas law includes a provision commonly called the "Movers Clause" that can help you avoid an early termination fee.

If you're relocating within or out of Texas, understanding this rule could save you serious money. Let's break down exactly how it works and how to take advantage of it.

What Is the Movers Clause?

The Movers Clause is a provision under Public Utility Commission (PUC) of Texas rules that allows residential customers to exit their electricity contract without paying an early termination fee (ETF) when they move to a new address.

Key Points:

• Applies to residential customers only (not commercial)
• Covers moves to new service addresses in Texas or out of state
• Requires proper documentation and notification
• Provider cannot charge ETF if you follow the rules

Who Qualifies?

You may qualify for the Movers Clause if:

• You're a residential customer (not a business)
• You're moving to a new address (not just changing providers at the same location)
• You provide proper documentation (proof of move)
• You give your provider appropriate notice

Examples of Qualifying Moves:

• Renting an apartment and moving to a house
• Moving from Dallas to Houston
• Moving from Texas to another state
• Relocating for a job
• Downsizing to a smaller home

Non-Qualifying Scenarios:

• Switching providers at the same address (not a move)
• Commercial/business accounts
• Temporary moves (you plan to return)
• Failure to provide documentation

How to Use the Movers Clause

Step 1: Notify Your Provider

Contact your electricity provider as soon as you know your move date. Let them know:

• You're moving to a new address
• Your last day of service at your current address
• That you're invoking the Movers Clause to waive the ETF

Step 2: Provide Documentation

Your provider will likely require proof of your move. Acceptable documentation typically includes:

• Signed lease for new residence
• Closing documents for new home purchase
• Utility bill at new address
• Moving company contract
• Letter from new employer (for job relocations)
• Updated driver's license with new address

Step 3: Get Written Confirmation

Request written confirmation that:

• Your ETF is waived under the Movers Clause
• Your final bill reflects the waiver
• Your service end date is recorded correctly

Keep all documentation for your records in case of disputes.

Important Details

Timing Matters

While there's no strict timeline in the PUC rules, best practices suggest:

• Notify your provider 14-30 days before your move
• Provide documentation before or immediately after the move
• Don't wait until after you receive your final bill

Final Bill Considerations

Your final bill should include:

• Charges through your last day of service
• Any outstanding balance
• No ETF (if you properly invoked the Movers Clause)

Review your final bill carefully. If an ETF appears, contact your provider immediately with your documentation.

Moving Within Texas

If you're staying in Texas, you can:

1. Transfer your current plan to your new address (if available in that area)
2. Cancel and sign up fresh at the new address (use Movers Clause to avoid ETF)
3. Shop for a new provider entirely

Pro Tip: Even if your current provider offers to transfer service, take the opportunity to shop around. Rates and options may be different in your new service area.

Moving Out of Texas

If you're leaving the state:

• The Movers Clause still applies
• You'll need a new electricity provider in your new state
• Document your move with proof of new residence

What If Your Provider Refuses?

If your provider denies the ETF waiver despite proper documentation:

1. Escalate within the company - Ask for a supervisor
2. Reference PUC rules - Cite the Movers Clause provision
3. File a complaint - Contact the PUC of Texas at (888) 782-8477 or puc.texas.gov
4. Document everything - Keep records of all communications

The PUC takes consumer protection seriously and will investigate legitimate complaints.

Frequently Asked Questions

Can I use the Movers Clause multiple times?

Yes, each time you move to a new address, you can invoke the Movers Clause for your current contract.

Does this apply to business accounts?

No, the Movers Clause applies only to residential customers. Commercial accounts have different rules—check your contract or contact us about commercial options.

What if I'm moving temporarily?

If you plan to return to your original address, the Movers Clause may not apply. Discuss your situation with your provider.

Can I transfer my plan to someone else?

Electricity contracts are generally not transferable. The new resident must sign up for their own service.

Moving Soon?

Whether you're staying in Texas or heading elsewhere, make sure you understand your options:

• Compare plans for your new address before you move
• Use the Movers Clause to exit your current contract fee-free
• Consider locking in a good rate at your new location

Need help navigating the move? Contact us for assistance finding the right plan for your new Texas home.